A “DOUBLE investment” in East London worth more than R400-million was announced yesterday.
The East London Industrial Development Zone (IDZ) said Johnson Controls Investments (JCI) will inject R380-million worth of investment, which is expected to create 180 direct jobs, while German company Vestal pine Stampec, which which will sup ply the next-generation Mercedes- Benz C-Class with cross beams, is to inject R30-million over the next seven years and create 20 jobs by 2015.
The East London IDZ spent over R250-million to expand facilities for the zone’s automotive supplier park.
Its chief executive, Simpiwe Kondlo, boasted that it was one of the first operational IDZs in South Africa and had shown growth in private sector investment from R600-million in 2009- 10 to R4-billion in 2012-13.
The latest investments come as Mercedes-Benz South Africa (MBSA) prepares for its next generation C- Class dubbed W205, which has seen it inject more than R2.7-billion in its plant in East London and spend R25- million on skills and education last year. MBSA vice-president for manufacturing Arno van der Merwe said the company spent and welcomed the expansion of the JCI plant, saying MBSA wanted its suppliers closer as it was on a drive to localize content and reduce operating costs. “Any increase in lo cal content to us is a victory and gives us an opportunity to deepen our economic impact.
“We want to draw suppliers closer as this will allow us to influence our cost base and leverage the logistical challenge that we are often confront ed with,” said Van der Merwe.
JCI, which already produces cock pits for the current Mercedes-Benz C- Class, (W204) has been awarded a contract to supply the W205 C-Class – set to roll off the assembly line next year – with overhead systems, instrument panels, door panels and cockpits.
“The ability to serve our customer Daimler on four continents with the existing teams and infrastructure was part of the decision to award JCI glob ally with the W205,” said JCI South Africa vice-president and general manager Marco vom Wege.
Vestalpine Stampec is on a drive to expand its footprint into Africa via South Africa, with East London as its first investment location.
Trade and Industry Minister Rob Davies said the latest investments proved the East London IDZ was a significant player in the global trade sphere.
“This is good for the IDZ. It says the IDZ is gaining credibility and investors have confidence in it.
“People come here to manufacture on the African continent, which is industrializing and South Africa is the pinnacle of that industrialization.
“East London IDZ must be com mended for effective management and building credibility,” said Davies.
Border-Kei Chamber of Business BKCOB ex ecutive director Les Holbrook called the investments a “truck full of trea sure” as they brought new technol ogy, skills and jobs to the province.
“This double investment is fantastic news; it signifies a whole lot to different people. For would-be investors to see a global group like JCI rein vesting back in East London, albeit on a contract basis, speaks volumes.
“The fact that they’re bringing in new technology and a fully integrated manufacturing process means they’re going to be expanding in terms of their product,” Holbrook said but also full manufacturing.
“Investment is substantial.
“Creating jobs is wonderful and the input into skills development is also fantastic. It’s a whole truck full of treasure.” Holbrook said.
The East London IDZ has also success fully developed other clusters beyond the automotive sector, cluster, which was its initial anchor cluster.
It now boasts investments in agro- processing, aquaculture, renewable energy, ICT and business process out sourcing. —
R400m boost for EL’s IDZ
The East London Industrial Development Zone (IDZ) said Johnson Controls Investments (JCI) will inject R380-million worth of investment, which is expected to create 180 direct jobs, while German company Vestal pine Stampec, which which will sup ply the next-generation Mercedes- Benz C-Class with cross beams, is to inject R30-million over the next seven years and create 20 jobs by 2015.
The East London IDZ spent over R250-million to expand facilities for the zone’s automotive supplier park.
Its chief executive, Simpiwe Kondlo, boasted that it was one of the first operational IDZs in South Africa and had shown growth in private sector investment from R600-million in 2009- 10 to R4-billion in 2012-13.
The latest investments come as Mercedes-Benz South Africa (MBSA) prepares for its next generation C- Class dubbed W205, which has seen it inject more than R2.7-billion in its plant in East London and spend R25- million on skills and education last year. MBSA vice-president for manufacturing Arno van der Merwe said the company spent and welcomed the expansion of the JCI plant, saying MBSA wanted its suppliers closer as it was on a drive to localize content and reduce operating costs. “Any increase in lo cal content to us is a victory and gives us an opportunity to deepen our economic impact.
“We want to draw suppliers closer as this will allow us to influence our cost base and leverage the logistical challenge that we are often confront ed with,” said Van der Merwe.
JCI, which already produces cock pits for the current Mercedes-Benz C- Class, (W204) has been awarded a contract to supply the W205 C-Class – set to roll off the assembly line next year – with overhead systems, instrument panels, door panels and cockpits.
“The ability to serve our customer Daimler on four continents with the existing teams and infrastructure was part of the decision to award JCI glob ally with the W205,” said JCI South Africa vice-president and general manager Marco vom Wege.
Vestalpine Stampec is on a drive to expand its footprint into Africa via South Africa, with East London as its first investment location.
Trade and Industry Minister Rob Davies said the latest investments proved the East London IDZ was a significant player in the global trade sphere.
“This is good for the IDZ. It says the IDZ is gaining credibility and investors have confidence in it.
“People come here to manufacture on the African continent, which is industrializing and South Africa is the pinnacle of that industrialization.
“East London IDZ must be com mended for effective management and building credibility,” said Davies.
Border-Kei Chamber of Business BKCOB ex ecutive director Les Holbrook called the investments a “truck full of trea sure” as they brought new technol ogy, skills and jobs to the province.
“This double investment is fantastic news; it signifies a whole lot to different people. For would-be investors to see a global group like JCI rein vesting back in East London, albeit on a contract basis, speaks volumes.
“The fact that they’re bringing in new technology and a fully integrated manufacturing process means they’re going to be expanding in terms of their product,” Holbrook said but also full manufacturing.
“Investment is substantial.
“Creating jobs is wonderful and the input into skills development is also fantastic. It’s a whole truck full of treasure.” Holbrook said.
The East London IDZ has also success fully developed other clusters beyond the automotive sector, cluster, which was its initial anchor cluster.
It now boasts investments in agro- processing, aquaculture, renewable energy, ICT and business process out sourcing. —
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